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Emerging Markets: Temporary Turbulence, Long-Term Resilience

Mar 31, 2014
Publisher: Milken Institute

Although there has been a number of important developments in the global economy during the past year, few have attracted more attention than the mass exodus of investors from emerging markets' stocks and bonds.

This article will bring clarity to what we believe are the main causes for the drop in emerging market asset prices and to explain why this is unlikely to result in a repeat of the 1990s crisis.

One reason: Emerging markets have worked diligently to diversify sources of financing, which has increased access to capital and added a level of financial market depth not available during the crises of the past.